Nigeria: FCCPC Warns PoS Operators Against Price Fixing, Threatens Jail Term

The Federal Competition and Consumer Protection Commission (FCCPC) has issued a stern warning to Point of Sale (PoS) operators, cautioning them against engaging in price fixing, which could lead to a three-month jail term for violators.

The FCCPC’s cease-and-desist order comes after PoS operators, represented by the Association of Mobile Money and Bank Agents Nigeria (AMMBAN), fixed new prices for PoS transactions on July 17. Concerns were raised about potential exploitation of consumers due to this action.

The commission, in a statement signed by its Executive Vice Chairman/Chief Executive Officer, Babatunde Irukera, emphasized that violating the order could result in penalties of up to N10 million for corporate entities and N1 million and/or a three-month prison sentence for individuals.

The FCCPC clarified that while it respects the freedom of PoS service providers to set prices within market forces, it opposes price fixing that limits consumer choices and exhibits unfair practices.

The commission has taken a cautious approach so far but has now adopted an Order & Notice (ONC) to communicate its intention to enforce the law. The ONC has been served on AMMBAN, and the commission is publicly disseminating it to reach all concerned parties.

Despite the explanation by AMMBAN that it provided a price guide and not price fixing, the FCCPC maintains its stance. The commission is prepared to prosecute violators and affiliated entities responsible for violating business conduct.

While the commission prefers not to disrupt small enterprises’ operations, it will resort to prohibiting merchant services and privileges for PoS operators or AMMBAN members who persist in inconsistent practices.

The FCCPC’s decision to curb price fixing aims to protect consumers and maintain a free and competitive market. PoS operators are urged to adhere to the commission’s order and ensure transparent and fair pricing practices. The association has responded to the FCCPC’s communication, and discussions on the matter continue between the parties involved.

Ultimately, the enforcement of the FCCPC’s order will shape the landscape of PoS transactions and safeguard consumers’ interests in Nigeria.